Puget Sound Divers is a company that provides diving services such as underwater

Question

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to dlients in the Puget Sound area. The company's planning budget for May appears below Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($400.00q) 200 $ 80,000 Expenses: Wages and salaries ($11,600+$130.00q) Supplies ($5.00q) Equipment rental ($2,000+$23.00q) Insurance ($4,200) 37,600 1,000 6,600 4,200 832 $1.46q) Miscellaneous ($540 Total expense Net operating income 50,232 29,768 Required During May, the company's activity was actually 190 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income

Explanation / Answer

Answer:-

Pugut Sound Drivers Flexible Budget For the month of Ended May 31 Particulars Amount $ Diving hours 190 Revenue (a) $400.00q*190 diving hours 76000 Variable expenses:- Wages & Salaries $130.00q*190 diving hours 24700 Supplies $5.00q*190 diving hours 950 Equipment rental $23.00q*190 diving hours 4370 Miscellenous $1.46q*190 diving hours 277.4 Total variable costs (b) 30297.4 Fixed Expenses Wages & Salaries 11600 Equipment rental 2000 Insurance 4200 Miscellenous 540 Total fixed costs (c) 18340 Net Opreating income d=a-(b+c) 27362.6

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